Paying for car purchase with a credit card

Giggidy

I had a credit card many years ago that I used only once, paid in full when the statement was due and then cut it up and never used again. This was only to help my credit rating when we were First Time Buyers. I would like to purchase a car, which I have the funds for in my savings account. I want to pay for it using a credit card as a safety measure in case things go pear shaped and I would have Section 75 as some form of protection. Please bear with my complete ignorance, but I need to apply for a card, on the basis of the credit limit being enough to purchase the car (over £10k) which I'm aware will be rather difficult if I don't have much of a credit history to begin with. Can I apply for 2 cards with different providers, or should I pay up to the credit limit and the balance in cash and still be protected? How long do credit applications take these days

[Deleted User]

A lot of dealers won't accept card payments, so you may not need to worry about the limit.

They may let put a deposit on a credit card, which will be enough for section 75.

It would be worth building some credit history for future use, rather than avoiding it altogether so if you can get a card, make sure you use it regularly.

Ben8282

Giggidy wrote: »

I had a credit card many years ago that I used only once, paid in full when the statement was due and then cut it up and never used again. This was only to help my credit rating when we were First Time Buyers.

And do you reaaly believe that this helped with your mortgage application?

Giggidy

Deleted_User wrote: »

A lot of dealers won't accept card payments, so you may not need to worry about the limit.

They may let put a deposit on a credit card, which will be enough for section 75.

It would be worth building some credit history for future use, rather than avoiding it altogether so if you can get a card, make sure you use it regularly.

Thank you, so does paying a small amount on credit card trigger section 75 for the whole balance?

[Deleted User]

Yes. Pay a pound on your card and you're covered.

Giggidy

Ben8282 wrote: »

And do you reaaly believe that this helped with your mortgage application?

I reaaly do. We got the house, didn't we

Every little helps, as they say

Giggidy

Deleted_User wrote: »

Yes. Pay a pound on your card and you're covered.

Is it not usually over £100 and you're covered? Also, can I use my partner's credit card (in case I don't get one in time, I want to pay a deposit as soon as.)

Fingerbobs

Giggidy wrote: »

Is it not usually over £100 and you're covered? Also, can I use my partner's credit card (in case I don't get one in time, I want to pay a deposit as soon as.)

As long as the price of the item you're buying is between £100 and £30,000, you're covered by Section 75. It doesn't matter how much of it you pay for on the credit card: £1 is sufficient.

[Deleted User]

Giggidy wrote: »

Is it not usually over £100 and you're covered? Also, can I use my partner's credit card (in case I don't get one in time, I want to pay a deposit as soon as.)

As above, the item price needs to be over £100.

But if the car is for you, use your own card, or S75 may not be valid.

YorkshireBoy

Giggidy wrote: »

Also, can I use my partner's credit card (in case I don't get one in time, I want to pay a deposit as soon as.)

Only if her name is on the invoice and she is the legal owner. Then she would have the protection.

You're panicking unnecessarily as it's entirely possible to get a credit card within a week.

PRAISETHESUN

There needs to be a clear debtor-creditor-supplier link for section 75 to take effect, so I'd recommend using a card in your name unless your partner intends to be the legal owner of the car. But otherwise as above, as long as the item in question is over £100 then paying even a penny will qualify the entire value of the purchase in the event of needing to make a section 75 claim. A good way to do this is to pay the holding deposit with your credit card, and then arranging payment for the remainder of the balance with your preferred method.